Law firm mergers have always been tricky and history has shown they often don’t work very well. But there is an uptick in merger activity with 88 firms merging in the United States last year, according to a study by legal consulting firm Altman Weill.
The reason behind mergers is simple. Firms largely merge looking to boost revenue and gain critical mass in areas that often seem complimentary. Most are small affairs. Larger mergers, however can be spectacular failures. Thelen and Dewey are good examples. Others like DLA have been extremely successful. When mergers do fail it is often due to culture clashes and unrealistic numbers.
But that doesn’t keep firms from looking for potential marriages. The latest is a proposed union between Washington, D.C.’s Patton Boggs LLP and the much larger Squire Sanders that would create a 1,700-lawyer entity with offices in 22 countries. Global law firm Dentons also has made overtures to Patton Boggs, which is known for its lobbying clout, but fell on hard times in the past two years, according to a recent story in the Wall Street Journal.
Stay tuned to see how things shake out.
